US coffee connoisseurs are starting to spend again, if Starbucks' fourth-quarter figures are any indication.

The global coffee shop chain raised its earnings guidance for the full year 2010 after consumers continued to increase their number of visits and spending per visit in the quarter to September 27.

Seattle-based Starbucks made a net profit of $150 million in the fourth quarter, compared to $5.4 million last year, despite a 4 per cent fall in revenue to $2.4 billion.

Troy Alstead, Starbucks’ chief financial officer, said: “We are seeing consumers coming in and spending and we’re seeing the improvement across all parts of our day. We’re very encouraged by what we saw in the second half of the (fiscal) year. It gives us some encouragement for the quarter coming up."

Howard Schultz, Starbucks’ chairman and chief executive, said that he was “cautiously optimistic” about the upcoming holiday sales period.

Revenue was impacted by the stronger dollar, a 1 per cent fall in sales at comparable outlets and the fact that the company had 385 fewer stores than in the same quarter of 2008.

The company said last year that it would close about 800 outlets in the US and 100 in its international division after a too-rapid expansion diluted its premium brand and sales of its pricey drinks were hit as consumers cut back.

Starbucks still faces strong competition from rivals such as McDonalds and Dunkin Donuts, which have improved their cafe-style offerings.

But Mr Alstead said that the cost-cutting project was taking effect and sales were up, enabling the chain to increase its non-GAAP earnings per share outlook for 2010 to 15 per cent to 20 per cent growth.

Non-GAAP EPS rose 13 per cent to 80 cents per share in the year to September 27.

The company saved $210 million in the fourth quarter after wasting fewer products and making its workforce more efficient. It took a $53.2 million restructuring charge to finish leases early on unwanted stores.

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